The Role of Global Value Chains for Worker Tasks and Wage Inequality

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Tác giả: Piotr Lewandowski

Ngôn ngữ: eng

Ký hiệu phân loại: 339.22 Distribution of aggregate personal income and wealth

Thông tin xuất bản: World Bank, Washington, DC, 2023

Mô tả vật lý:

Bộ sưu tập: Tài liệu truy cập mở

ID: 302142

This paper studies the relationship between participation in global value chains, worker routine task intensity, and within-country wage inequality. It uses unique survey data from 47 countries across the development spectrum to calculate worker-level, country-specific routine task intensity and combines them with sectoral measures of backward and forward global value chains participation. Higher global value chains participation is associated with more routine-intensive work, specifically among offshorable occupations, especially in countries at lower development levels. The results by broad sectors contrast sharply: higher global value chains participation is linked to a higher routine task intensity in offshorable occupations in the industry but a lower routine task intensity in non-offshorable occupations in business services. Higher worker-level routine task intensity is strongly associated with lower wages, so global value chains participation indirectly widens the within-country wage inequality through this routine task intensity channel. At the same time, global value chains participation directly contributes to reduced wage inequality, except for the richest countries. Overall, this analysis finds that global value chains participation reduces wage inequality in most low- and middle-income countries that receive offshored jobs but widens wage inequality in high-income countries that offshore jobs.
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